Saturday, October 28, 2006

Unit 2: Demerit goods: Binge drinking

The first article suggests a method for overcoming the problem of teenage binge drinking. In economic terms this is a problem of binge drinking being a demerit good.
The second article is Geoff Riley's overview of the issue

a) What are the 2 conditions needed for a good to be catagorised as a demerit good?
b) How are these present with teenage binge drinking?
c) What is the proposed solution?
d) How would this reduce the demerit good problem? Include a diagram in your answer

http://www.guardian.co.uk/frontpage/story/0,,1932728,00.html

http://www.tutor2u.net/newsmanager/templates/?a=1861&z=1

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